30th September 2020
Tinkering away at the edges to improve efficiencies can no longer guarantee survival in an industry facing wide-spread disruption. Catering businesses and organisations need to embark on a fundamental transformation in both strategy and operations.
Technology or ‘digitalisation’ is one of the most significant business opportunities that will drive robust decision-making, shift operational models, improve automation, stimulate innovation, improve customer focus and even eliminate certain processes.
The speed and extent in which businesses can mitigate the impact of this crisis, recover and thrive will depend upon their ability to save costs without cutting muscle.
Five steps to reduce catering costs without compromising on performance:
1. Start with strategy – have a clear view of your offering, proposition and markets within the competitive landscape. Ensure this is consistently understood across the organisation.
2. Align cost to strategy – identify the strategically critical costs from the non-essentials. Critical costs finance your strategy.
3. Reshape the model – you can’t look the same and expect to perform differently. Take action to restructure the business; consider processes, IT infrastructure, customers, and culture.
4. Deliver a transformation programme – lead your change programme from the front with clear plans and actions. Convert resisters into adopters and drive a sustained positive momentum.
5. Track, measure, monitor and improve – create a culture of continuous improvement where you set the bar for others to follow.
While managing costs and focusing on profit may ensure survival, organisations that build value will emerge stronger in the long-term.